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Voltas: AC portfolio overhaul likely post energy rating norm changes; Neutral - IndiaNotes.com
Voltas: AC portfolio overhaul likely post energy rating norm changes; Neutral
Motilal Oswal | Published: 06 Dec, 2017  | Source : IndiaNotes.com
Valuation view:

Despite intense competitive pressure in the room AC segment, VOLT has been able to gain a market share without sacrificing margins. We would
watch out for the company’s a) pricing/positioning on inverters, with the ratings changes from Jan’18 – a successful transition by VOLT would make us turn positive on the stock, and b) launch of washing machines and refrigerators in 2HCY18. Moreover, the projects business has also stabilized with a) margins recovering to 5-6% and b) a revival in the domestic business. We maintain our Neutral rating on thestock with an SOTP-based target price of INR 580.

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About Motilal Oswal

Motilal Oswal was founded in 1987 as a small sub-broking unit, with just two people running the show. Today it has a 2000 member team with a networth of Rs7 bn and market capitalization as of March 31, 2008 at Rs19 bn.

 

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Disclaimer: The author has taken due care and caution to compile and analyse the data. The opinions expressed above are only the views of the author, and not a recommendation to buy or sell. Neither the author nor IndiaNotes.com accept any liability whatsoever arising from the use of any of the above contents.

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